IndiaNivesh Weekly Pulse

Transcription

1 21st Jan 2019 IndiaNivesh Weekly Pulse TECHNICAL RESEARCH still remains a real test for the bulls! Close Chart 1 : NIFTY Weekly Chart R1 / R / S1 / S / DEMA DEMA DSMA Market Outlook Mehul Kothari Sr. Technical Analyst - Equity Tel: mehul.kothari@indianivesh.in We have been waiting for quite some time for this breakout since we had a buy on dips view. w, since the index has managed to close the week above the triangle breakout is being confirmed and Nifty has a potential to sneak above mark. However, we also maintain our stance that still remains a very strong hurdle for the bulls. Thus we would advise traders to start booking profits once index arrives near that zone. As of now, the support of has now been shifted to Only a move below the same might dwell the ongoing momentum. For the coming sessions and would remain an intermediate resistance & support respectively for the markets. Currently we advise traders to trade with positive bias but avoid any overleveraged positions and follow strict stop loss.. IndiaNivesh Securities Ltd 21st Jan of 9

2 Trend lines in Actions Chart 2 : BANKNIFTY Daily (Prev. Close : 27457) Chart 3 : RELIANCE Weekly (Prev. Close : 1184) The index is trading stuck between the placement of two rising trend lines which are acting as resistance as well as support. A move on either side might dictate the further action. (Neutral) The stock found support at the rising trend line on the weekly chart and has maintained its upside momentum from there. (Bullish) Chart 4 : MGL - Weekly (Prev. Close : 904) Chart 5: INDIGO Daily (Prev. Close : 1076) The stock is trading stuck near the placement of falling trend line which is acting as resistance. A move above the same might dictate the further action. (Neutral) The stock is trading below the placement of rising trend line on the daily chart which indicates a possibility of fresh correction. (Bearish) Trend lines are a visual representation of support and resistance in any timeframe and a simple tool available for trend analysis. The greater the number of touch points increases the importance, break on the either side may lead to major moves or trend reversals. The above charts will help you go through recent trend line breakouts / breakdowns. IndiaNivesh Securities Ltd 21st Jan of 9

3 Bollinger Band breakouts / breakdowns Chart 6 : WIPRO - Daily (Prev. Close : 346) Chart 7 : WOCKPHARMA - Daily (Prev. Close : 489) A close above the Bollinger band and at breakout point on the daily chart indicates fresh upside in the stock. (Bullish) Chart 8 : TV18- Daily (Prev. Close : 34) Chart 9: EXIDEIND - Daily (Prev. Close : 247) A close below the Bollinger band and at breakdown point on the daily chart indicates fresh downside in the stock. (Bearish) A close below the Bollinger band and at breakdown point on the daily chart indicates fresh downside in the stock. (Bearish) A close below the Bollinger band and at breakdown point on the daily chart indicates fresh downside in the stock. (Bearish) Bollinger Band contraction represents period of low volatility and may be considered by traders for a potential sign of future increased volatility and possible trading opportunities. Thus, in the above examples we have shared few stocks which underwent a breakout / breakdown from the Bollinger band that indicating further acceleration in the on-going trend. IndiaNivesh Securities Ltd 21st Jan of 9

4 Nifty 50 Stocks Above / Below 200 DSMA IndiaNivesh Securities Ltd 21st Jan of 9

5 Nifty 50 Overbought / Oversold Stocks above 70 & below 30 Relative Strength Index RSI- The above shown chart represents the comparison of price action of benchmark index Nifty vis a vis the overbought/ oversold zone of Nifty 50 stocks considering the value of daily RSI. The Overbought zone occurs when the RSI value crosses 70 levels while the oversold zone occurs when it plunges below 30 levels. As per last three years data, we can analyse that, whenever the number of overbought stocks in Nifty 50 goes above 13 the market tend to make an intermediate top, while oversold position occurs when number of oversold stocks of Nifty 50 goes above 13 the market tend to form intermediate bottom. Currently the number of oversold or overbought stocks in NIFTY 50 is negligible which indicates that the move on either side cannot be ruled out. IndiaNivesh Securities Ltd 21st Jan of 9

6 Weekly Derivatives Analysis Open Interest Shockers Nifty Option Snapshot As per the option chain, OI concentration on the upside is at mark which remains to be a strong hurdle for the series. On the downside, support seems to be around for this series. There is hardly anything major being witnessed on the options front. IndiaNivesh Securities Ltd 21st Jan of 9

7 Weekly Pulse MIS IndiaNivesh Securities Ltd 21st Jan of 9

8 Disclaimer: This document has been prepared by IndiaNivesh Securities Limited ( INSL ), for use by the recipient as information only and is not for circulation or public distribution. INSL includes subsidiaries, group and associate companies, promoters, employees and affiliates. This document is published in accordance with Regulation 18 of the Securities and Exchange Board of India (Research Analysts) Regulations, INSL researches, aggregates and faithfully reproduces information available in public domain and other sources, considered to be reliable and makes them available for the recipient, though its accuracy or completeness has not been verified by INSL independently and cannot be guaranteed. This document is not to be altered, transmitted, reproduced, copied, redistributed, uploaded or published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from INSL. This document is solely for information purpose and should not to be construed as an offer to sell or the solicitation of an offer to buy any security. Recipients of this document should be aware that past performance is not necessarily a guide for future performance and price and value of investments can go up or down. The suitability or otherwise of any investments will depend upon the recipients particular circumstances. INSL does not take responsibility thereof. The information contained in this document has been obtained from sources that are considered as reliable though its accuracy or completeness has not been verified by INSL independently and cannot be guaranteed. INSL has not independently verified all the information contained within this document. The research analysts of INSL have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, thing in this document constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients specific circumstances. INSL does not accept any responsibility or whatever nature for the information, assurances and statements given or made available herein or for any omission or for any liability arising from the use of this document. Information mentioned is the current information as of the date appearing on this document only. INSL directors/ employees and its clients may have holdings in the stocks mentioned in the document. This report is based on technical and derivative analysis on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. Following table contains the disclosure of interest in order to adhere to utmost transparency in the matter. Disclosure of Interest Statement 1 Details of business activity of IndiaNivesh Securities Limited (INSL) INSL is a Stock Broker registered with BSE, NSE and MCX - SX in all the major segments viz. Cash, F & O and CDS segments. INSL is also a Depository Participant and registered with both Depository viz. CDSL and NSDL. Further, INSL is a Registered Portfolio Manager and is registered with SEBI. 2 Details of Disciplinary History of INSL disciplinary action is / was running / initiated against INSL 3 Details of Associates of INSL Research analyst or INSL or its relatives'/associates' financial interest in the subject company and nature of such financial interest Research analyst or INSL or its relatives'/associates' actual/beneficial ownership of 1% or more in securities of the subject company, at the end of the month immediately preceding the date of publication of the document. Research analyst or INSL or its relatives'/associates' any other material conflict of interest at the time of publication of the document Has research analyst or INSL or its associates received any compensation from the subject company in the past 12 months Has research analyst or INSL or its associates managed or co-managed public offering of securities for the subject company in the past 12 months Has research analyst or INSL or its associates received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past 12 months Has research analyst or INSL or its associates received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months Has research analyst or INSL or its associates received any compensation or other benefits from the subject company or third party in connection with the document. Please refer to the important 'Stock Holding Disclosure' report on the IndiaNivesh website (investment Research Section - link). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. INSL and its affiliates may have investment positions in the stocks recommended in this report. (except to the extent of shares held by Research analyst or INSL or its relatives'/associates') Please refer to the important 'Stock Holding Disclosure' report on the IndiaNivesh website (investment Research Section - link). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. INSL and its affiliates may have investment positions in the stocks recommended in this report. 12 Has research analyst served as an officer, director or employee of the subject company 13 Has research analyst or INSL engaged in market making activity for the subject company 14 Other disclosures IndiaNivesh Securities Ltd 21st Jan of 9

9 INSL, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change, as per applicable law, without any prior notice. INSL reserves the right to make modifications and alternations to this statement, as may be required, from time to time. IndiaNivesh Securities Limited Research Analyst SEBI Registration. INH Corporate Office: Lodha Supremus, 17th Floor, Senapati Bapat Marg, Lower Parel (West), Mumbai Registered Office: 601 & 602, Sukh Sagar, N. S. Patkar Marg, Girgaum Chowpatty, Mumbai Tel (Board): Fax: research@indianivesh.in Website: IndiaNivesh Securities Ltd 21st Jan of 9